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Getting Control of Debt Management Debt Management and Collecting Your Debts
Most of us who are very good at managing our own personal and business finances are very poor at collecting the monies that are owed to us. We really hate to find ourselves in the position of being a debt collector.
Because we take our own financial obligations seriously, we tend to think that others do the same. They don't...at least not all of them.
Everybody has at one time or another loaned friends 20 bucks and never seen a penny of it repaid yet, and most likely never will. We all know that. We knew when we made the loan that it was really a gift. Those kinds of things you simple chalk up to experience and move on.
Other loans of substantial amounts that are made to family and friends should, however, have legal documents attached to them. Asking for collateral isn't unheard of, and neither is charging interest.
Advice given by very wise people of the past tells us to simply not lend money to family or friends, and it really is excellent advice. You aren't a bank or a lending institution. You are simply very good at managing your own finances.
If lending institutions won't lend your friends and relatives money, it is for a very good reason. The institutions have information that tells them that they aren't very likely to get their money back. You won't have the information about how they have handled debt in the past or how deeply in debt they are at the present. All you are going to know is what they choose to tell you.
The best answer when friends and relatives ask you to loan them a substantial amount of money is, “NO.” But if you do decide to make the loan anyway, at least make it legal and binding with contracts, collateral, and interest.
See Also:
Credit / Debt Management - Credit Repair Improve Credit Score and Pay ...
| American Version of Debt Management Debt Management and Health
There aren't many things in life more stressful than having bills due that you cannot pay, a mail box full of second, third, and final notices, and bill collectors calling day and night.
Stress itself is a health issue and can also cause many other health issues. Financial health has a direct connection to physical and emotional health. Financial problems lead to relationship problems which lead to emotional, mental, and physical health problems. Controlling your financial life is important not just from a financial standpoint, but from the relationship and health standpoints, as well.
Of course, I am not suggesting that you can avoid every health problem, all stress, or that your relationships will flourish if you just stay in control and manage your debt well. I am saying that you can avoid a lot of unnecessary grief by making a plan and managing your debt in order to prevent stress and all of the problems that stress can and does cause.
Make a plan -- think budget. Take control of your financial situation. A written plan takes the pressure off. You don't have to remember things. You simply use your budget and your financial plan.
Pay your bills on time and in full each and every month. When you conduct your financial life in a well-planned and responsible manner, you will find that other areas of your life become better organized and better functioning as well.
It isn't easy to take control in midstream, so to speak, but it can be done. The first step to relieving some stress in your life is to find a budget form on the Internet or in a brick-and-mortar store. Follow the directions that will be provided.
As you take control, you will relieve your stress and improve your physical, mental, and emotional health as well as your financial health. |
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More articles:
debtmanuss's Xanga Site - DEBT MANAGEMENT PROGRAMS
Debt Management Agreements - The Pitfalls
The Traps of Debt Consolidation for Debt Management
Debt Management Is a Family Affair
The Debt Management Trap - Credit Cards
| Debt Management by Negotiation Debt Management through Bankruptcy
Bankruptcy is a last resort! It should never even be considered as an option until all other options of debt relief have been completely exhausted -- at least not for us ordinary mortals.
If you do find yourself in the position of having to declare bankruptcy, you will be in some pretty good company. Donald Trump, Burt Reynolds, Walt Disney, Wayne Newton, George Jones, MC Hammer, and Johnny Unitas are just a few of the very famous people who have had to declare bankruptcy and then been able to get on with their lives.
It isn't the end of the world. You will survive!
Bankruptcy laws have changed. There was a time when filing bankruptcy erased all debts but that really is no longer the case. You need a lawyer to guide you through the bankruptcy process. Some of your assets are protected even today, and without a good lawyer in your corner, you can be fooled into thinking that they are not protected.
Don't take the chance. If you must file for bankruptcy, get a good bankruptcy lawyer in your corner so that you come out on the other side in as good shape as possible.
Don't listen to hearsay and rumors. You need facts...good concrete information. A lawyer who specializes in bankruptcy can get you the very best settlements that are possible. The harassing phone calls will stop immediately.
Yes, you will lose most of your assets through bankruptcy, but you will be getting a clean slate. Contrary to popular opinion, it is sometimes easier to get loans and credit cards after bankruptcy than it was prior to the bankruptcy.
You will have to start over, so to speak, after bankruptcy, but that doesn't necessarily mean starting from zero. You can retain many of your assets if you have the right legal counsel. |
Related Topics: Planning for Debt Management,
American Version of Debt Management, The Debt Management Trap-Credit Cards
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